📉 Key Highlights:
- LIC’s stock dropped ~3.01% on July 25, 2025.
Over the past two trading days, cumulative decline amounts to ~3.59% . - In the finance/NBFC sector, the broader index fell by ~2.3% during the same period .
💼 Broader Market Context:
- LIC’s share underperformed the Sensex: down ~3.53% in the past week versus Sensex’s modest fall of 0.11% .
- YTD performance: LIC is down ~0.15% while Sensex is up ~4.52%.
- Over the last 12 months, LIC shares have plunged ~23.27%, while Sensex rose ~2.04%
👥 Portfolio Impact:
- As of December 2024, LIC’s holdings were valued at ₹14.72 trillion, declining to ₹13.87 trillion by February 18, 2025—a loss of ₹84,247 crore (~5.7%).
- Major contributors: ITC (
₹11,863 cr), L&T (₹6,713 cr), SBI (~₹5,647 cr)—together accounting for ~29% of total loss. - LIC also recorded losses in 26 other companies, with declines between ₹2,000–4,000 crore in names like TCS, HCL Tech, Jio Financial, Adani Ports, HDFC Bank & IDBI Bank
🏦 Sector-Wise Contribution to Loss:
- The finance, NBFC & insurance sectors contributed ₹18,385 crore (22% of total decline) .
- Other major drag sectors:
- IT: ₹8,981 cr
- Infrastructure: ₹8,313 cr
- Power generation: ₹7,193 cr
- Pharmaceuticals: ₹4,591 cr .
📈 Exceptions & Bright Spots:
- Certain LIC portfolio stocks bucked the trend, adding ₹1,000–3,000 crore each:
- Bajaj Finance, Kotak Mahindra Bank, Maruti Suzuki, Airtel, Bajaj Finserv, JSW Steel, SBI Cards.
- RIL and Tata Consumer Products each contributed ~₹840 crore in gains.
🔍 Why Is LIC Falling?
- Market-wide pressure on the finance & NBFC sector, including weak Q1 earnings from key NBFCs like Bajaj Finance .
- Investor sentiment remains cautious despite some strong corporate earnings.
- LIC’s stock remains above long-term moving averages (100‑day and 200‑day), but below short-term averages (5‑, 20‑ and 50‑day), signaling weak momentum ahead .
- Analysts warn of further earnings underperformance and valuation pressure in coming quarters .
🧾 Summary Table
| Area | Insight |
|---|---|
| Day Drop | ~3.01% (July 25, 2025) |
| 2-Day Decline | ~3.59% |
| Weekly Performance | LIC: –3.53% vs Sensex: –0.11% |
| 1-Year Decline | ~23.27% |
| Sector Drag | Finance/NBFC: ₹18,385 cr (~22%) |
| Notable Stock Losses | ITC, L&T, SBI, TCS & others |
| Bright Spots in Portfolio | Bajaj Finance, Kotak, Airtel, RIL, Tata Consumer |
🧠 Takeaway:
LIC’s recent share slide is part of a sector-wide downturn in NBFCs and financial services, driven by valuation compression, earnings caution, and sector-specific news (like asset quality concerns at Bajaj Finance). Though LIC holds some outperforming stocks, the losses in big-ticket investments are weighing heavily on its portfolio.
